This is the first tax data of Javier Milei’s new management, from the point of view that it is the first full month. In that framework, one of the mainstays of the treasury’s income, the VAT, collected $2.85 billion, which implies an increase of 290.9% year-on-year.
January collection was notoriously influenced by the increase in the PAIS Tax, which grew 1,252% and for the improvement in foreign trade as a product of the devaluation that raised the exchange rate.
The AFIP indicated that “Tax VAT increased 200.6%, while Customs VAT increased by 488%”, which marked growth above inflation. The tax part, which is linked to consumption, showed a sharp decrease, which reflects a drop in consumption in December.
While, Income Taxthe other pillar of State income, recorded a collection of $1 billion, which explains a nominal increase of only 116%, against an estimated inflation of 242%.
This is a sharp drop in income as a result of the entry into force of last year’s modifications regarding the highest salaries, which stopped paying taxes, and? Now it has generated a dispute with the governors who are seeking compensation for the lost funds.
On the other hand, the AFIP indicated that the “remunerations paid in the first fortnight of 2024 were covered by the Scheduled Tax” paid by less than 1% of registered employees.
The analysts’ view
According to estimates of the Argentine Institute of Fiscal Analysis (IARAF), the recaudation fell in real terms 3.9% compared to January 2023. “When excluding the collection of taxes linked to foreign trade, the real interannual variation would have been -15.5%,” says the IARAF.
The report indicates that “the collection that would fall the most would be that of the Personal Property Tax, which would have fallen by 60.8% in real terms year-on-year, followed by Fuels with 45% and Profits with 38.6%.”
“The taxes that would have increased the most in real terms would be the PAIS tax with 283.8%, followed by export duties with 181.2% and import duties and statistical tax with 41.9%,” the report states.
Other taxes
In the Tax on Bank debits and creditsalso known as check tax, $463,278 million were reached, with a year-on-year increase of 197.1%. “This month’s collection was attenuated by having two fewer business days compared to the previous year,” explained the AFIP.
Social Security produced revenues of $1.66 trillion, with a nominal increase of 161.7%. Of them, $637,396 million corresponded to personal contributions and $1 billion to Employer Contributions.
In Export Rights were obtained $645,168 million and an interannual variation from 891%. “The income this month of duties corresponding to exports recorded in December 2023 and the increase in the exchange rate had a positive impact,” said the AFIP. Similarly, in Import Duties and others, $324,671 million were obtained and a variation of 400%.
On the other hand, the Personal Property Tax barely collected $32,552 million with a nominal increase of 38%.
Meanwhile, for the PAIS Solidarity Tax $ 469,199 million were collected with a variation of 1,252.6%. It is favorably affected by the expansion of its tax base with the income of the payment applied to certain imports. In addition, the rate was increased to 15%
Source: Ambito
